Title:
Vietnam-Italy Accelerate Trade and Economic Cooperation: From EVFTA to Green Transition and New Supply Chains
Keywords:
Vietnam-Italy, EVFTA, energy transition, JETP, bilateral trade, investment, manufacturing, logistics, IUU, trade and economic cooperation
Introduction
Amid geopolitical conflicts, rising energy costs, and ongoing global supply chain restructuring affecting the world economy, the 10th meeting of the Vietnam-Italy Joint Committee on Economic and Trade Cooperation carries significance beyond routine diplomacy. This is an important moment for both countries to reassess their cooperation foundation, identify breakthrough areas, and establish new collaboration mechanisms more suited to the demands of the post-growth era.
The meeting, held during National Assembly Chairman Tran Thanh Man's official visit to Italy, was co-chaired by Deputy Minister of Industry and Trade Phan Thi Thang and Italian Undersecretary of State for Foreign Affairs and International Cooperation Maria Tripodi. This meeting was not only for evaluating past achievements but also demonstrated the determination of both sides to push bilateral economic and trade relations from "potential cooperation" to "deep cooperation," particularly in areas such as energy, green transition, processing and manufacturing, agricultural trade, and market connectivity.
Cooperation Foundation Expanding Rapidly
Vietnam-Italy relations are built on traditional friendship and have significantly developed in recent years due to complementary economic structures. Vietnam is an emerging manufacturing hub in Asia, while Italy is a major industrial economy in Europe with strengths in design, machinery, manufacturing, fashion, technology, and energy. This complementarity allows bilateral cooperation to extend beyond goods exchange to value chain linkages.
At the meeting, both sides assessed that despite global market volatility, bilateral trade turnover remained on a growth trajectory. This shows that enterprises from both countries have better utilized the EU-Vietnam Free Trade Agreement (EVFTA), especially in sectors where they have advantages such as textiles and garments, footwear, electronics, processed agricultural products, wood products, and machinery. The EVFTA not only brings tariff preferences but also promotes rules of origin, procedural transparency, and quality upgrades in export goods.
However, to fully leverage this agreement, the key is not just tariff reduction but also enhancing the ability to meet European market standards. This requires Vietnamese enterprises to increase investment in traceability, digitalization of supply chain management, environmental, social, and governance (ESG) certification, and localization of raw materials. For Italian enterprises, the Vietnamese market offers ample space to introduce advanced technology, equipment, materials, and industrial management solutions into a rapidly growing economy.
Energy Transition: Strategic Focus of New Cooperation
A highlight of this meeting was cooperation on energy transition and sustainable development. Italy is one of the international partners in Vietnam's Just Energy Transition Partnership (JETP), planning to mobilize about 500 million euros for related projects in the next 3-5 years. This is not just a financial commitment but also reflects consensus on development direction: shifting from a growth model highly dependent on fossil fuels to a more efficient, cleaner, and resilient one.
With Vietnam's electricity demand continuing to grow rapidly, the question is no longer "is there enough electricity" but "is there enough clean, stable, and competitive electricity." Therefore, cooperation with Italy in renewable energy, smart grids, energy storage technology, operational automation, and green finance has strong practical value. Italy's support for the Bac Ai pumped storage hydropower project through Cassa Depositi e Prestiti also indicates that Rome's intent goes beyond trade cooperation to long-term participation in strategic infrastructure development.
From a policy perspective, this is a cooperation model worth promoting: one side provides technology, capital, and project management experience; the other ensures implementation space, market demand, and commitment to institutional reform. If executed well, Vietnam can not only enhance power supply capacity but also form a supporting industrial ecosystem for clean energy, benefiting from electromechanical equipment, control systems, to high-end technical services.
Industry, Agriculture and Logistics: Key Areas Needing Upgrade
In addition to energy, the two sides also had in-depth exchanges on fundamental areas such as manufacturing, textiles and garments, footwear, industrial machinery, agriculture, and local cooperation. These areas are the "pillars" of bilateral trade and the most direct reflection of how closely connected enterprises from the two countries are.
For Italy, strengths lie in industrial machinery and equipment, automation technology, new materials, and product design; these are precisely what Vietnam needs to advance its next-generation industrialization. For Vietnam, advantages include market size, cost competitiveness, the ability to participate more deeply in supply chains, and its geostrategic position in Southeast Asia. When the two sides connect in the right fields, cooperation will no longer be just simple import-export but can develop into joint R&D, satellite factories, and regional distribution centers.
In agriculture and aquatic products, Vietnam has huge potential but also faces strict EU standards on food safety, environmental sustainability, and combating illegal fishing. Italy's support for the EU to soon lift the IUU "yellow card" on Vietnamese seafood is a positive signal because it is a key bottleneck related to restoring market confidence, reducing compliance risks, and expanding exports. In the long run, resolving the IUU issue is not just about meeting EU regulations but also helps improve fisheries management, protect marine resources, and promote more sustainable development of the aquaculture industry.
Additionally, logistics and transport connectivity are also key pillars. Since 2025, the direct Vietnam-Milan flight has significantly shortened travel time, reduced trade costs, and facilitated tourism, trade, and market research. If combined with visa policy optimization, route expansion, and the development of air-sea logistics services, bilateral connectivity will no longer just be a story between two economic capitals but will become a broader network linking industrial zones, ports, and innovation centers of both countries.
Depth of Cooperation: From Goods Exchange to Co-Creation of Value
The most noteworthy aspect of this meeting is its strategic thinking: both sides discussed not only expanding trade volume but also identifying priority industries to jointly invest, innovate, and explore markets. This marks an important shift in thinking on international economic and trade cooperation.
In the new phase, competition is no longer just about how many goods are sold, but whether one can participate in higher value-added stages such as design, R&D, standardization, distribution, and after-sales service. If Vietnam and Italy can cooperate in automation, green technology, supporting industries, and technical talent training, the bilateral relationship will transcend traditional trade models toward a production-innovation linkage model.
This is also why both sides emphasized creating more favorable conditions for their respective advantageous products to enter each other's markets. For Vietnam, this may include processed agricultural products, aquatic products, textiles and garments, footwear, electronics, and wood products; for Italy, machinery and equipment, pharmaceuticals, industrial materials, high-tech products, and high-end consumer goods. By addressing technical barriers through dialogue, standardization, and enterprise support, the growth potential far exceeds what can be achieved by adjusting tariffs alone.
Conclusion
The 10th meeting of the Vietnam-Italy Joint Committee on Economic and Trade Cooperation shows that the two countries are entering a more pragmatic phase of cooperation, built on complementary needs and new development priorities. In the context where global competition is shifting towards technology, energy, and supply chain resilience, Vietnam and Italy have ample room to become strategic partners in green, clean, and high-value-added fields.
The signing of the meeting minutes and the agreement to hold the 11th meeting in Hanoi in 2027 are not just procedural milestones but also a commitment to a roadmap for upgrading bilateral economic and trade relations. If current agreements are implemented through efficient collaboration mechanisms, enterprises from both countries will be the biggest direct beneficiaries, and Vietnam-Italy relations will steadily advance toward becoming a model of cooperation between Southeast Asia and Europe in the era of green transition.
